A proposed accommodations for Exhibition Park are not going ahead as planned.
The proponents behind a proposed Best Western hotel have pulled out of a plan to purchase land from the city next to CN Centre for the project.
The withdrawal was due to a corporate issue, said planning director Ian Wells.
With the sale of land not going forward, council voted to remove an associated project to spruce up the entrance to Exhibition Park from next year's capital plan.
The developer was going to add $150,000 to the project, which was also funded by the city's capital reserves to the tune of $125,000 and $75,000 from federal gas tax Community Works funds.
The work would have included sidewalk improvements and beautification work leading to CN Centre from Ospika Boulevard, as well as some road drainage work.
Announced in October, the proposed four-storey hotel project was expected to cost between $8 and $9 million.
Council had already passed the first two readings of a rezoning and official community plan amendment bylaw to change a one-hectare section of Exhibition Park, south of the arena and add a new corresponding policy be added to the OCP allowing for consideration of other commercial uses at Exhibition Park.
Mayor Shari Green said she wouldn't take the cancellation of the project as an idication of a slight against the city.
"You'd have to direct that question to them why they've decided not to move forward with their project," said Green. "I wouldn't want to speculate on what the reason is, but it's not related to anything happening on the ground here in Prince George."